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2004 (2) TMI 109 - AT - Customs

Issues:
Suspension of CHA license under Regulation No. 21(2) of the CHALR-1984 based on violation of regulations and involvement in a case of misdeclaration of goods.

Analysis:
In this case, the Adjudicating authority suspended the CHA license of the appellants under Regulation No. 21(2) of the CHALR-1984 due to the CHA's involvement in a case where Green Mung Beans were misdeclared, containing waste mung dal along with cartons of foreign-origin cigarettes concealed with the mung waste. The CHA admitted to signing the Bill of Entry for this import, and it was discovered that he permitted the use of his license by another individual without knowledge of the importer's whereabouts. The Bill of Entry was filed in the name of a different entity, M/s. Avadh Agri Exports, Gujarat, by the CHA.

The appellants argued that a show cause notice under Regulation 23 of the CHALR, 1984 was issued only in January 2004, which is yet to be responded to and adjudicated upon, causing a significant delay. They contended that since the CHA has been out of business for over a year, it should be considered sufficient punishment, and thus, requested the suspension to be lifted. The request was opposed by the ld. DR, highlighting the violations of CHALR by the appellants and asserting that allowing the CHA to operate before completing the enquiry under Regulation 23 would not be in the public interest.

Upon careful consideration of the arguments presented, the Tribunal observed that the CHA had been inactive for over a year and that formal proceedings had been initiated with the issuance of a show cause notice in January 2004. Consequently, the Tribunal concluded that the continued suspension of the CHA's license was not justifiable under the circumstances. Therefore, the Tribunal set aside the suspension and allowed the appeal, considering the period of inactivity and the initiation of regular proceedings as factors in their decision.

 

 

 

 

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